TRAI recommends over six-fold cost for 2G spectrum

India

Ani

Posted By: Ani

Published: Wednesday, February 9, 2011, 19:35 [IST]

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New Delhi, Feb 9 (ANI): In tune with the estimated loss pointed out by the Comptroller and Auditor General of India (CAG) in the 2G spectrum scam, the Telecom Regulatory Authority of India (TRAI) has recommended Rs 10,972.45 crore for a pan-India license with 6.2-megahertz spectrum.

Going by this valuation, six new pan-India licenses given in 2008 would have garnered Rs 65,834.7 crore to the government along with additional revenue from other firms who were given licences in fewer circles.

The CAG had estimated loss of up to Rs 1.76 lakh crore from the 2G spectrum allocation.

This had included new licences, dual technology licences and revenues from additional spectrum beyond the contracted limit of 6.2-megahertz held by various operators especially BSNL, Bharti and Vodafone.

The regulator has in fact classified valuation of spectrum in two categories. There are different prices for spectrum up to contracted limit of 6.2-megahertz and different for additional airwaves.

The spectrum price varies from circle to circle in both categories. In case of contracted limit, the price ranges from Rs 7.60 crore per megahertz in Jammu and Kashmir to Rs 187.38 crore in Tamil Nadu.

For the additional spectrum, the range is Rs 22.89 crore in Jammu and Kashmir to Rs 431.95 crore in Andhra Pradesh.

"These revised prices should be made applicable with effect from April 1, 2010, on pro-rata basis depending upon the number of years left for licences to expire," said TRAI, and added that any licence coming up for renewal would have to pay for spectrum based on new price.

These prices are for spectrum in 1800-megahertz band.

The TRAI had IN November 2010 recommended cancellation of 38 licenses and legal examination of the feasibility of cancelling 31 more licenses.

These licenses hold spectrum in frequency band of 1800 megahertz as well as 800 megahertz bands.

"If these cancellations take place, it will then be possible for the government to auction surplus spectrum and treat the auction price as the relevant price of spectrum beyond 6.2 Mhz for the given licensed service area," said TRAI.

"While the figures given by the experts may be adopted, it should be done with full realisation that these are estimated figures and may or may not always match the exact market price," it added. (ANI)